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By:  Zaffirini                                                    S.B. No. 22 

A BILL TO BE ENTITLED
AN ACT
relating to the care and custody of foster children and the duties and responsibilities of the Health and Human Services Commission and the Department of Family and Protective Services concerning the care and custody of those children. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 39.052(a), Education Code, is amended to read as follows: (a) Each school year, the agency shall prepare and distribute to each school district and licensed foster care facility a report card for each campus, including foster care facilities within the district. The campus report cards must be based on the most current data available disaggregated by student groups. Campus performance must be compared to previous campus and district performance, current district performance, state established standards, and comparable campus group performance. SECTION 2. Section 39.053(a), Education Code, is amended to read as follows: (a) Each board of trustees shall publish an annual report describing the educational performance of the district and of each campus and licensed foster care facility in the district that includes uniform student performance and descriptive information as determined under rules adopted by the commissioner. The annual report must also include: (1) campus performance objectives established under Section 11.253 and the progress of each campus toward those objectives, which shall be available to the public; (2) the performance rating for the district as provided under Section 39.072(a) and the performance rating of each campus in the district as provided under Section 39.072(c); (3) the district's current special education compliance status with the agency; (4) a statement of the number, rate, and type of violent or criminal incidents that occurred on each district campus, to the extent permitted under the Family Educational Rights and Privacy Act of 1974 (20 U.S.C. Section 1232g); or (5) information concerning school violence prevention and violence intervention policies and procedures that the district is using to protect students; [and] (6) the findings that result from evaluations conducted under the Safe and Drug-Free Schools and Communities Act of 1994 (20 U.S.C. Section 7101 et seq.) and its subsequent amendments; and (7) information received under Section 51.403(e) for each high school campus in the district, presented in a form determined by the commissioner. SECTION 3. (a) Section 39.182, Education Code, is amended by amending Subsection (a) and adding Subsection (d) to read as follows: (a) Not later than December 1 of each year, the agency shall prepare and deliver to the governor, the lieutenant governor, the speaker of the house of representatives, each member of the legislature, the Legislative Budget Board, and the clerks of the standing committees of the senate and house of representatives with primary jurisdiction over the public school system a comprehensive report covering the preceding school year and containing: (1) an evaluation of the achievements of the state educational program in relation to the statutory goals for the public education system under Section 4.002; (2) an evaluation of the status of education in the state as reflected by the academic excellence indicators adopted under Section 39.051; (3) a summary compilation of overall student performance on academic skills assessment instruments required by Section 39.023 with the number and percentage of students exempted from the administration of those instruments and the basis of the exemptions, aggregated by grade level, subject area, campus, and district, with appropriate interpretations and analysis, and disaggregated by race, ethnicity, gender, and socioeconomic status; (4) a summary compilation of overall performance of students placed in an alternative education program established under Section 37.008 on academic skills assessment instruments required by Section 39.023 with the number of those students exempted from the administration of those instruments and the basis of the exemptions, aggregated by district, grade level, and subject area, with appropriate interpretations and analysis, and disaggregated by race, ethnicity, gender, and socioeconomic status; (5) a summary compilation of overall performance of students at risk of dropping out of school, as defined by Section 29.081(d), on academic skills assessment instruments required by Section 39.023 with the number of those students exempted from the administration of those instruments and the basis of the exemptions, aggregated by district, grade level, and subject area, with appropriate interpretations and analysis, and disaggregated by race, ethnicity, gender, and socioeconomic status; (6) a summary compilation of the overall performance of students in foster care or other residential care under the conservatorship of the Department of Family and Protective Services on academic skills assessment instruments required by Section 39.023 with the number of those students exempted from the administration of those instruments and the basis of the exemptions, aggregated by district, grade level, and subject area, with appropriate interpretations and analysis, and disaggregated by race, ethnicity, gender, and socioeconomic status; (7) [(6)] an evaluation of the correlation between student grades and student performance on academic skills assessment instruments required by Section 39.023; (8) [(7)] a statement of the dropout rate of students in grade levels 7 through 12, expressed in the aggregate and by grade level, and a statement of the completion rates of students for grade levels 9 through 12; (9) [(8)] a statement of: (A) the completion rate of students who enter grade level 9 and graduate not more than four years later; (B) the completion rate of students who enter grade level 9 and graduate, including students who require more than four years to graduate; (C) the completion rate of students who enter grade level 9 and not more than four years later receive a high school equivalency certificate; (D) the completion rate of students who enter grade level 9 and receive a high school equivalency certificate, including students who require more than four years to receive a certificate; and (E) the number and percentage of all students who have not been accounted for under Paragraph (A), (B), (C), or (D); (10) [(9)] a statement of the projected cross-sectional and longitudinal dropout rates for grade levels 9 through 12 for the next five years, assuming no state action is taken to reduce the dropout rate; (11) [(10)] a description of a systematic, measurable plan for reducing the projected cross-sectional and longitudinal dropout rates to five percent or less for the 1997-1998 school year; (12) a summary of the educational status of students in foster care or other residential care under the conservatorship of the Department of Family and Protective Services, grades PK-12, which includes their achievement on the academic skills assessment instruments required by Section 39.023, college entrance examinations, dropout rates, retention rates and high school graduation rates, a systematic plan for improving the educational status and lowering the dropout rate of these children and an evaluation of the success of the plan; (13) [(11)] a summary of the information required by Section 29.083 regarding grade level retention of students and information concerning: (A) the number and percentage of students retained; and (B) the performance of retained students on assessment instruments required under Section 39.023(a); (14) [(12)] information, aggregated by district type and disaggregated by race, ethnicity, gender, and socioeconomic status, on: (A) the number of students placed in an alternative education program established under Section 37.008; (B) the average length of a student's placement in an alternative education program established under Section 37.008; (C) the academic performance of students on assessment instruments required under Section 39.023(a) during the year preceding and during the year following placement in an alternative education program; and (D) the dropout rates of students who have been placed in an alternative education program established under Section 37.008; (15) [(13)] a list of each school district or campus that does not satisfy performance standards, with an explanation of the actions taken by the commissioner to improve student performance in the district or campus and an evaluation of the results of those actions; (16) [(14)] an evaluation of the status of the curriculum taught in public schools, with recommendations for legislative changes necessary to improve or modify the curriculum required by Section 28.002; (17) [(15)] a description of all funds received by and each activity and expenditure of the agency; (18) [(16)] a summary and analysis of the instructional expenditures ratios and instructional employees ratios of school districts computed under Section 44.0071; (19) [(17)] a summary of the effect of deregulation, including exemptions and waivers granted under Section 7.056 or 39.112; (20) [(18)] a statement of the total number and length of reports that school districts and school district employees must submit to the agency, identifying which reports are required by federal statute or rule, state statute, or agency rule, and a summary of the agency's efforts to reduce overall reporting requirements; (21) [(19)] a list of each school district that is not in compliance with state special education requirements, including: (A) the period for which the district has not been in compliance; (B) the manner in which the agency considered the district's failure to comply in determining the district's accreditation status; and (C) an explanation of the actions taken by the commissioner to ensure compliance and an evaluation of the results of those actions; (22) [(20)] a comparison of the performance of open-enrollment charter schools and school districts on the academic excellence indicators specified in Section 39.051(b) and accountability measures adopted under Section 39.051(g), with a separately aggregated comparison of the performance of open-enrollment charter schools predominantly serving students at risk of dropping out of school, as defined by Section 29.081(d), with the performance of school districts; and (23) [(21)] any additional information considered important by the commissioner or the State Board of Education. (d) The agency shall annually provide to the Department of Family and Protective Services the data on the educational status and academic performance of students in foster or other residential care under the conservatorship of the department. (b) The Texas Education Agency, in coordination with the Legislative Budget Board, shall: (1) develop a set of results-based performance measures to evaluate the academic achievement of students in foster care or other residential care under the conservatorship of the Department of Family and Protective Services; and (2) include the measures in the state dropout plan beginning in 2006. SECTION 4. Section 42.006(c), Education Code, is amended to read as follows: (c) Annually, the commissioner shall review the Public Education Information Management System and shall repeal or amend rules that require school districts to provide information through the Public Education Information Management System that is not necessary. In reviewing and revising the Public Education Information Management System, the commissioner shall develop rules to ensure that the system: (1) provides useful, accurate, and timely information on student demographics and academic performance, personnel, and school district finances; (2) contains only the data necessary for the legislature and the agency to perform their legally authorized functions in overseeing the public education system; [and] (3) does not contain any information related to instructional methods, except as required by federal law; and (4) provides useful, accurate and timely information on the educational conditions and academic performance of students in foster care. SECTION 5. Section 54.211, Education Code, is amended to read as follows: Sec. 54.211. EXEMPTIONS FOR STUDENTS IN FOSTER OR OTHER RESIDENTIAL CARE. (a) A student is exempt from the payment of tuition and fees authorized in this chapter if the student: (1) was in foster care or other residential care under the conservatorship of the Department of Family and Protective [and Regulatory] Services on or after: (A) the day preceding the student's 18th birthday; (B) the day of the student's 14th birthday, if the student was also eligible for adoption on or after that day; or (C) the day the student graduated from high school or received the equivalent of a high school diploma; and (2) enrolls in an institution of higher education as an undergraduate student not later than: (A) the third anniversary of the date the student was discharged from the foster or other residential care, the date the student graduated from high school, or the date the student received the equivalent of a high school diploma, whichever date is earliest; or (B) the student's 21st birthday. (b) The Texas Education Agency and the Texas Higher Education Coordinating Board shall develop outreach programs for students in foster or other residential care in grades 9-12 to ensure that they are aware of the availability of the exemption from the payment of tuition and fees authorized in this section. SECTION 6. Section 261.310, Family Code, is amended by adding Subsection (e) to read as follows: (e) The department, in conjunction with the Department of Public Safety, shall provide advanced training to its residential licensing investigators in investigative protocols and techniques. SECTION 7. Section 261.002, Family Code, is amended by adding Subsection (c) to read as follows: (c) The department shall enter into agreements with other states to allow for the exchange of reports of child abuse or neglect in other states' central registry systems. The department shall use information obtained under this section in performing the background checks required under Section 42.056, Human Resources Code. The department shall cooperate with federal agencies and shall provide information and report to the appropriate Federal agencies maintaining the national registry for child abuse and neglect. SECTION 8. Subchapter E, Chapter 261, Family Code is amended by adding Section 261.410 to read as follows: Sec. 261.410. REPORT OF ABUSE BY OTHER CHILDREN. (a) The department shall require a residential care facility to report each incident of physical or sexual abuse committed by one child on another child. (b) Using information received under Subsection (a), the department shall compile a report including information regarding: (1) the number of cases of physical and sexual abuse committed by one child on another; (2) identifying the foster care home or facility; (3) the dates the allegations of abuse were made; (4) the dates each investigation was started and concluded; (5) the findings and results of each investigation; and (6) information regarding the number of children involved in each incident investigated. (c) The department may adopt rules to administer this section. (d) In this section: (1) "Physical abuse" means: (A) physical injury that results in substantial harm to the child, or the genuine threat of substantial harm from physical injury to the child, including an injury that is at variance with the history or explanation given and excluding an accident or reasonable discipline by a parent, guardian, or managing or possessory conservator that does not expose the child to a substantial risk of harm; or (B) failure to make a reasonable effort to prevent an action by another person that results in physical injury that results in substantial harm to the child. (2) "Sexual abuse" means: (A) sexual conduct harmful to a child's mental, emotional, or physical welfare, including conduct that constitutes the offense of indecency with a child under Section 21.11, Penal Code, sexual assault under Section 22.011, Penal Code, or aggravated sexual assault under Section 22.021, Penal Code; (B) failure to make a reasonable effort to prevent sexual conduct harmful to a child; (C) compelling or encouraging the child to engage in sexual conduct as defined by Section 43.01, Penal Code; (D) causing, permitting, encouraging, engaging in, or allowing the photographing, filming, or depicting of the child if the person knew or should have known that the resulting photograph, film, or depiction of the child is obscene as defined by Section 43.21, Penal Code, or pornographic; or (E) causing, permitting, encouraging, engaging in, or allowing a sexual performance by a child as defined by Section 43.25, Penal Code. SECTION 9. (a) Subchapter E, Chapter 261, Family Code is amended by adding Section 261.411 to read as follows: Sec. 261.411. INVESTIGATIONS OF FACILITIES REGULATED BY DEPARTMENT. (a) The department shall thoroughly investigate all complaints, allegations, or reports of abuse, neglect, or exploitation received arising out of a residential child care facility regulated by the department. (b) In addition to other investigative procedures provided by law or by rule authorized in this subchapter, an investigation under this section shall include: (1) an interview of the individual reporting the complaint or allegation; (2) an interview with each alleged perpetrator and victim; (3) an interviews of staff or any other individual reasonably believed to have information relevant to the investigation; (4) a review of any other information that would corroborate the allegation or complaint, including facility records, children's records, employee records, medical records, school records, utility records, criminal records, and records of the department; and (5) a background check of any individual alleged to have abused, neglected, or neglectfully supervised a child at a facility. (c) The department shall list on its public website the date of a call to the statewide intake system, the beginning date of an investigation, the ending date of an investigation, and the results of an investigation. The department also shall provide this information for any investigation that has been administratively closed. (d) The department shall make unannounced visits to facilities when investigating reports received through its hotline. (e) The Health and Human Services Commission shall randomly review reports and investigations made under this section to ensure that they are made timely and comply with the requirements of this section. (f) The Health and Human Services Commission shall report to the legislature and the governor annually the total number of reports received and investigations conducted under this section. The report must include an assessment of the timeliness and thoroughness of the investigations. (g) The Department of Public Safety shall assist in training department staff in advanced methods for conducting investigations of abuse and neglect at residential child care facilities. (h) During the course of an investigation conducted under this section, if it is alleged that a person subject to an investigation has engaged in illegal drug use, the department shall require that person to be tested for drugs within 24-hours of the receipt of notice of the allegation. (i) The department shall adopt rules and establish standards and procedures to administer this section. (b) The Department of Family and Protective Services shall adopt the rules required by Section 261.411, Family Code, as added by Subsection (a) of this section, not later than January 1, 2006. SECTION 10. Section 263.102(a), Family Code, is amended to read as follows: (a) The service plan must: (1) be specific; (2) be in writing; (3) be prepared by the department or other agency in conference with the child's parents; (4) state appropriate deadlines; (5) state whether the goal of the plan is: (A) return of the child to the child's parents; (B) termination of parental rights and placement of the child for adoption; or (C) because of the child's special needs or exceptional circumstances, continuation of the child's care out of the child's home; (6) state steps that are necessary to: (A) return the child to the child's home if the placement is in foster care; (B) enable the child to remain in the child's home with the assistance of a service plan if the placement is in the home under the department's or other agency's supervision; or (C) otherwise provide a permanent safe placement for the child; (7) state the actions and responsibilities that are necessary for the child's parents to take to achieve the plan goal during the period of the service plan and the assistance to be provided to the parents by the department or other authorized agency toward meeting that goal; (8) state the actions and responsibilities that are necessary to ensure the child's attendance at school and maintain or improve the child's academic success in school; (9) [(8)] state the name of the person with the department or other agency whom the child's parents may contact for information relating to the child if other than the person preparing the plan; and (10) [(9)] prescribe any other term or condition that the department or other agency determines to be necessary to the service plan's success. SECTION 11. Section 263.502(c), Family Code, is amended to read as follows: (c) The placement review report must: (1) evaluate whether the child's current placement is appropriate for meeting the child's needs; (2) evaluate whether efforts have been made to ensure placement of the child in the least restrictive environment consistent with the best interest and special needs of the child if the child is placed in institutional care; (3) identify the services that are needed to assist a child who is at least 16 years of age in making the transition from substitute care to independent living if the services are available in the community; (4) evaluate whether the child's current educational placement is appropriate for meeting the child's academic needs; (5) [(4)] identify other plans or services that are needed to meet the child's special needs or circumstances; and (6) [(5)] describe the efforts of the department or authorized agency to place the child for adoption if parental rights to the child have been terminated and the child is eligible for adoption. SECTION 12. Section 264.001, Family Code, is amended to read as follows: Sec. 264.001. DEFINITIONS [DEFINITION]. In this chapter:[,] (1) "Commission" means the Health and Human Services Commission. (2) "Department" ["department"] means the Department of Family and Protective [and Regulatory] Services. (3) "Psychotropic medication" means a drug that affects the mind through action on the central nervous system and is prescribed for depression, schizophrenia, attention deficit hyperactivity disorder, seizures, and a variety of other similar conditions. SECTION 13. Section 264.002, Family Code, is amended by adding Subsection (f) to read as follows: (f) Notwithstanding any other law, the department may not perform directly or provide any daily care or case management activities or functions under this section after August 31, 2008. Beginning on September 1, 2008, all those activities and functions shall be outsourced in accordance with Section 264.106. The transition to outsourcing shall commence and be accomplished in accordance with the timing and procedures provided in Section 264.106. SECTION 14. Section 264.004, Family Code, is amended by adding Subsection (d) to read as follows: (d) Effective September 1, 2008, no state funds appropriated to the department for daily care and case management activities for foster children may be used except to fund the outsourcing of those activities in accordance with Section 264.106. SECTION 15. Section 264.101, Family Code, is amended by amending Subsection (d) and adding Subsection (g) to read as follows: (d) The commission [Board of Protective and Regulatory Services] may adopt rules that: (1) establish criteria and guidelines for the payment of foster care, including medical care, for a child and for providing care for a child after the child becomes 18 years of age if the child is regularly attending high school, an institution of higher education, or a vocational or technical program; and (2) prescribe the maximum amount of state funds that a residential facility may spend on non-direct residential services, including administrative expenses. (g) The commission shall recover the funds that exceed any caps established under Subsection (d). SECTION 16. Section 264.105, Family Code, is amended to read as follows: Sec. 264.105. MAXIMIZING FEDERAL FUNDING [MEDICAL SERVICES PAYMENTS]. (a) The department shall attempt to maximize the use of federal funding to provide medical care payments authorized by Section 264.101(c) for children for whom the department has been named managing conservator. (b) The commission and the department shall attempt to maximize the use of federal funding to care for children who have developmental disabilities or mental retardation and for whom the department has been named managing conservator. To achieve this objective, the commission may amend the agreement described in Section 32.021(b), Human Resources Code, or request appropriate waivers from the federal government concerning any requirement of Title IV, Social Security Act (42 U.S.C. Section 601 et seq.) or other federal law. (c) For each child receiving foster care under this subchapter that is eligible to participate in the medical assistance program under Chapter 32, Human Resources Code, the department shall promptly: (1) inform the person providing the care about the child's eligibility; and (2) ensure that the person has received any identification card or similar document that is needed to claim benefits under Chapter 32. (d) The department shall train a provider of foster care to a child who is eligible to participate in the medical assistance program under Chapter 32, Human Resources Code, about the procedures for claiming benefits under that program. (e) The department shall establish procedures or adopt rules to ensure that a child receiving foster care under this subchapter receives timely medical services, including dental care, as required by: (1) Title IV, Social Security Act (42 U.S.C. Section 601 et seq.); and (2) any procedures established or rules adopted by the department to satisfy the requirements of Title IV. SECTION 17. (a) Section 264.106, Family Code, is amended to read as follows: Sec. 264.106. [CONTRACTS FOR] OUTSOURCING OF SUBSTITUTE CARE SERVICES. (a) It is the policy of this state that beginning September 1, 2008, the provision of all foster care services entrusted to the department shall be outsourced in accordance with this section, and that there be a transition to complete outsourcing, which shall commence not later than September 1, 2005. As soon as practicable after that date, the department shall institute a rulemaking proceeding in accordance with Chapter 2001, Government Code, to adopt substantive and procedural rules to carry out the intent and purpose of this section and the transition to outsourcing to be completed not later than September 1, 2008. [The department shall: [(1) assess the need for substitute care services throughout the state; and [(2) contract with substitute care providers only to the extent necessary to meet the need for those services.] (b) During the transition period and at all times after August 31, 2008, the department shall contract [Before contracting] with a substitute care provider, as defined herein, [the department shall determine whether:] for the provision of all foster care services assigned to the department under this chapter; provided, however, that the outsourcing of foster care services shall not affect or inhibit the rights of the state as the managing conservator of a foster child. The department shall retain the responsibility for monitoring the quality of contracted services and programs and ensuring that the same are provided in accordance with federal and state law and the rules of the department, the Department of State Health Services, and the Texas Commission on Environmental Quality. This subsection shall be construed to effectuate the intent that the transition to outsourcing be commenced immediately upon the effective date of this section and be completed not later than September 1, 2008. [(1) community resources are available to support children placed under the provider's care; and [(2) the appropriate public school district has sufficient resources to support children placed under the provider's care if the children will attend public school]. (c) In addition to the requirements of Section 40.058(b), Human Resources Code, a contract with a substitute care provider must include provisions that: (1) enable the department to monitor the effectiveness of the provider's services; and (2) authorize the department to terminate the contract or impose sanctions for a violation of a provision of the contract that specifies performance criteria. (d) A substitute care provider shall use caseworker-child visitation as one of the performance criteria required by Subsection (c)(2) and establish formal guidelines and documentation standards for caseworker-child visitation. (e) [(d)] In determining whether to contract with a substitute care provider, the department shall consider the provider's performance under any previous contract for substitute care services between the department and the provider. (f) [(e)] In this section, "substitute care provider" means [a person who provides residential care for children for 24 hours a day, including]: (1) a child-care institution, as defined by Section 42.002, Human Resources Code; or (2) a child-placing agency, as defined by Section 42.002, Human Resources Code[;] [(3) a foster group home or foster family home, as defined by Section 42.002, Human Resources Code; and [(4) an agency group home or agency home, as defined by Section 42.002, Human Resources Code, other than an agency group home, agency home, or a foster home verified or certified by the department]. (g) A transition task force is hereby created to (1) review the transition plan, including the substantive and procedural rules required to be adopted under subsection (a); (2) monitor the department's implementation of the transition; and (3) report to the lieutenant governor, speaker of the house and the legislative budget board concerning the transition at least once each quarter. (h) The task force shall be composed of three members to be appointed no later than October 1, 2005, consisting of representatives appointed by each of the following: (1) the lieutenant governor; (2) the speaker of the house of representatives, and; (3) the comptroller of public accounts. (i) The representative of the comptroller of public accounts shall serve as the presiding officer of the task force. (j) The task force shall meet at least monthly and shall make recommendations to advance the implementation of the transition. The department shall affirmatively address the recommendations of the task force by rulemaking or decision, as appropriate, within (30) days of receipt thereof. (k) The task force is abolished effective August 31, 2008. (b) Section 264.106(d), Family Code, as added by Subsection (a) of this section, applies only to a contract that is entered into or renewed on or after the effective date of this section. A contract entered into or renewed before that date is governed by the law in effect on the date the contract is entered into or renewed and the former law is continued in effect for that purpose. SECTION 18. Subchapter B, Chapter 264, Family Code, is amended by adding Section 264.1062 to read as follows: Sec. 264.1062. FOSTER CHILD EDUCATIONAL PERFORMANCE. The department shall monitor the educational performance and educational placement of a foster child, under objective criteria developed by the department. The educational performance shall be considered in department evaluations of foster parents and department caseworkers. SECTION 19. Section 264.1075, Family Code, is amended to read as follows: Sec. 264.1075. ASSESSING THE NEEDS OF A CHILD [USE OF ASSESSMENT SERVICES]. (a) As soon as possible after a child begins receiving foster care under this subchapter, the department shall assess whether the child has a developmental disability or mental retardation. The commission shall establish the procedures that the department uses to make an assessment under this subsection. The procedures may include screening or participation by: (1) a private person experienced in the developmental disabilities or mental retardation of children; or (2) a local mental retardation authority. (b) Before placing a child in substitute care, the department shall use assessment services provided by a child-care facility or child-placing agency in accordance with Section 42.0425, Human Resources Code, to determine the appropriate substitute care for the child. SECTION 20. Subchapter B, Chapter 264, Family Code, is amended by adding section 264.1076 to read as follows: Sec. 264.1076. THE FOSTER CARE DEVELOPMENTAL DISABILITIES ADVISORY COMMITTEE. (a) The committee shall advise the department about the care of foster children with developmental disabilities or mental retardation, including effective methods for: (1) minimizing the number of foster children placed in institutions and maximizing the number of foster children receiving community based care; (2) training and supporting persons who provide foster care in a residential setting about the particular needs of children with developmental disabilities or mental retardation; (3) training employees of the department to promptly identify foster children with developmental disabilities or mental retardation; (4) monitoring the care provided in residential settings to foster children with developmental disabilities or mental retardation; (5) recruiting individuals to provide foster care in a residential setting to children with developmental disabilities or mental retardation; and (6) contracting with persons to care for foster children with developmental disabilities or mental retardation. (b) The commission shall determine the number of persons who serve on the committee. (c) The commission shall appoint the members of the committee and determine each member's length of service. In making appointments to the committee, the commission shall attempt to include: (1) representatives of the commission and other relevant state agencies; (2) providers of services to persons with developmental disabilities or mental retardation; (3) persons who formerly received care under this subchapter as foster children; (4) persons with expertise about developmental disabilities or mental retardation; (5) persons who advocate for the rights of children with developmental disabilities or mental retardation; and (6) persons related to children with developmental disabilities or mental retardation. (d) Chapter 2110, Government Code, does not apply to the committee. (e) The commission or the department may pay any expenses incurred by the committee. (f) In this section, "Committee" means the advisory committee to the department about the care of foster children with developmental disabilities or mental retardation. SECTION 21. (a) Subchapter B, Chapter 264, Family Code, is amended by adding Section 264.115 to read as follows: Sec. 264.115. CONTRACTS BETWEEN RESIDENTIAL TREATMENT CENTERS AND ON-SITE CHARTER SCHOOLS. A contract between a residential treatment center or similar facility that provides services to a child who is receiving foster care under this subchapter and a charter school located at the center must require the school to participate in the school health and related services reimbursement program administered by the commission. (b) Section 264.115, Family Code, as added by Subsection (a) of this section, applies only to a contract entered into on or after the effective date of this section. A contract entered into before the effective date of this section is governed by the law in effect on the date the contract is entered into, and that law is continued in effect for this purpose. SECTION 22. Subchapter B, Chapter 264, Family Code, is amended by adding Sections 264.116-264.120 to read as follows: Sec. 264.116. FOSTER CARE MEDICAL REVIEW TEAM. (a) The commission shall create a foster care medical review team to review the diagnostic services, medication, treatment, and therapy delivered to children in foster care. The commission's deputy commissioner for health services shall coordinate the team. (b) The team should include: (1) child psychiatrists; (2) psychologists; (3) pediatricians; (4) pharmacologists; (5) pharmacists; (6) staff assigned to the commission's drug utilization review program; (7) the Texas State Board of Medical Examiners; (8) state medical schools; and (9) other professionals with experience in diagnostic services, medication, treatment, and therapy delivered to children. (c) The team shall develop a best practices manual documenting the appropriate use of medications for foster children. (d) The team shall advise department staff on methods to evaluate the appropriate use of psychotropic medications and therapy as an outcome for foster children. (e) The commission must report the team's results to the governor, lieutenant governor, and speaker of the house of representatives not later than January 1, 2006. The report shall include: (1) an explanation of the review of the diagnostic services, medication, treatment, and therapy delivered to children in foster care required by this section; (2) a description of the development and distribution of the best practices manual developed by the team; (3) a description of the methods used in evaluating the use of psychotropic medications; (4) recommendations for the improvement of diagnostic services, medication, treatment, and therapy delivered to children in foster care; (5) recommendations for changes in the Medicaid program to address improvements in the evaluation, placement and care of medically fragile children as defined in section 264.119; and (6) other information the commission determines is appropriate. Sec. 264.117. MONITORING USE OF MEDICATIONS. The staff assigned to the commission's drug utilization review program shall monitor the use of medications for foster children by annually matching Medicaid identification numbers and examining a sample of the data. Sec. 264.118. AUTHORIZATION FOR CERTAIN MEDICATIONS. (a) Administration of a psychotropic medication to a foster child requires the prior approval of the department managing conservator, a foster parent, and a parent or legal guardian who has not lost or surrendered the parent's parental rights. (b) Before starting any medication, children and their caretakers shall be provided information on their prescribed medications in accordance with the guidelines of the American Academy of Child and Adolescent Psychiatry. Sec. 264.119. MEDICAL PASSPORT. (a) The department shall develop a medical "passport" for each foster child. The passport shall include the child's complete medication, medical, and therapy history. (b) The child or child's caretaker shall present the passport during each physician or therapist visit to ensure that each physician or therapist has a complete record of the child's medical treatment. (c) The passport shall be part of the child's department record and shall stay with the child as they change placements, physicians, or therapists and as long as the child is in foster care. (d) The department shall evaluate technology options that may be expanded to include the medical histories of foster children. Sec. 264.120. MEDICALLY FRAGILE. (a) Not later than January 1, 2006, the commission and the department shall implement a Medicaid catastrophic case management program for medically fragile foster children under the department's care. (b) A medically fragile child is a child who: (1) is younger than age 21; (2) has a serious, ongoing illness or a chronic condition that: (A) has lasted or is anticipated to last at least twelve months; (B) requires daily or has required as least one month of hospitalization; and (C) requires ongoing medical treatments and monitoring by appropriately trained personnel, which may include parents or other family members; (3) requires the routine use of a medical device or the use of assistive technology to compensate for the loss of usefulness of a body function needed to participate in activities of daily living; and (4) lives with an ongoing threat to the child's continued well-being. (c) The commission may contract with children's hospitals or other providers for case management services. (d) The foster care medical review team created under Section 264.115 shall review cases of medically fragile children and shall establish best practices guidelines for their evaluation, placement, and care. SECTION 23. Subchapter B, Chapter 264, Family Code, is amended by adding Section 264.121 to read as follows: Sec. 264.121. PREPARATION FOR ADULT LIVING PROGRAM. (a) The commission and the department shall maximize funding from all available federal sources to support the program. (b) The commission and the department may require the assistance of any state agency that has expertise about available federal funding to support the program. (c) The commission shall ensure that the agreement described in Section 32.021(b), Human Resources Code, is consistent with the requirements of Subsection (a). (d) The department shall enter into cooperative agreements with the Texas Workforce Commission and local workforce development boards to facilitate the effectiveness of the program. The department, the Texas Workforce Commission, and those boards shall maintain one-stop centers for foster care children to obtain services under the program. (e) The department may enter into an agreement with any private person to facilitate the effectiveness of the program, including maintenance of the one-stop centers described in Subsection (d). (f) In this section: (1) "Local workforce development board" means a local workforce development board created under Chapter 2308, Government Code. (2) "Program" means the program administered by the department that prepares foster children for independent living as adults. SECTION 24. Subchapter B, Chapter 264, Family Code, is amended by adding Section 264.122 to read as follows: Sec. 264.122. ANNUAL CONFIDENTIAL SURVEY. (a) The department shall conduct an annual survey of each child provided foster care who is at least age 10. The survey shall include questions regarding: (1) the quality of care and living conditions; (2) the quality of food; (3) recreational opportunities; (4) any improvements that could be made to improve the child's quality of life; and (5) any other factor that the department considers relevant to the child's quality of care. (b) The department shall adopt procedures in conducting the surveys to ensure that the identities of the respondents remain confidential. (c) The department may adopt rules to administer this section. (d) The results of the surveys conducted under this section shall be reported annually to the Legislative Budget Board, the governor's office of budget and planning, the legislature, and the Health and Human Services Commission. SECTION 25. Chapter 264, Family Code, is amended by adding Subchapter B-1 to read as follows:
SUBCHAPTER B-1. TEXAS FOSTER GRANDMAS AND GRANDPAS PROGRAM.
Sec. 264.171. IMPLEMENTATION. (a) The department shall partner with volunteer and advocacy organizations to develop and implement the Texas Foster Grandmas and Grandpas Program. The program shall provide a source of volunteer senior citizens to mentor children in foster care facilities. (b) From funds available for that purpose, the department may reimburse senior volunteers who participate in the program for actual and necessary expenses incurred from program participation, including travel expenses. The department shall develop guidelines that outline reimbursable expenses. (c) Each senior volunteer is subject to a state and national criminal background check as provided in Sections 411.114 and 411.087, Government Code. (d) Each senior volunteer shall be supervised by foster care facility staff. (e) The program is subject to Chapter 2109, Government Code. Sec. 264.172. COORDINATION WITH NONPROFIT ORGANIZATIONS. The department shall work with nonprofit organizations to solicit contributions for the program developed and implemented under this subchapter. Sec. 264.173. PARTNERING WITH THE TEXAS EDUCATION AGENCY. (a) It is the intent of the legislature to coordinate potential sources of funding that may be available to improve the delivery of services to foster children. Sources of funding may include grants for educational programs and services that may serve foster children. (b) The department shall partner with the Texas Education Agency to evaluate and solicit gifts, grants, and donations for the program. Sec. 264.174. PUBLICITY. Each state agency that serves children, youth, or families shall publicize the program on the agency's websites and other relevant publications, including Texas Online. Sec. 264.175. SERVICE AWARDS. The department shall work with nonprofit organizations to recognize program participants through annual volunteer service awards. SECTION 26. Section 264.201, Family Code, is amended by adding Subsection (f) to read as follows: (f) When the department applies to the federal government under Title IV, Social Security Act (42 U.S.C. Section 601 et seq.) for reimbursement of the department's administrative costs, the department shall apply under the part of Title IV that maximizes the amount of the reimbursement. This subsection applies only if applicable law authorizes the department to use the reimbursement to provide services directly or by contract under this subchapter. SECTION 27. Section 264.301, Family Code, is amended by adding Subsection (c) to read as follows: (c) When the department applies to the federal government under Title IV, Social Security Act (42 U.S.C. Section 601 et seq.) for reimbursement of the department's administrative costs, the department shall apply under the part of Title IV that maximizes the amount of the reimbursement. This subsection applies only if applicable law authorizes the department to use the reimbursement to provide services under this subchapter. SECTION 28. Section 531.003, Government Code, is amended to read as follows: Sec. 531.003. GOALS. The commission's goals are to: (1) maximize federal funds through the efficient use of available state and local resources; (2) provide a system that delivers prompt, comprehensive, effective services to the people of this state by: (A) improving access to health and human services at the local level; [and] (B) eliminating architectural, communications, programmatic, and transportation barriers; and (C) ensuring that all of its contracts are awarded fairly and in accordance with existing law, and that all of its contracts, contractors, subcontractors, funds and expenditures under those contracts, are monitored and reported in accordance with applicable law in the best interests of the state and the people of this state; (3) promote the health of the people of this state by: (A) reducing the incidence of disease and disabling conditions; (B) increasing the availability of health care services; (C) improving the quality of health care services; (D) addressing the high incidence of certain illnesses and conditions of minority populations; (E) increasing the availability of trained health care professionals; (F) improving knowledge of health care needs; (G) reducing infant death and disease; (H) reducing the impact of mental disorders in adults; (I) reducing the impact of emotional disturbances in children; (J) increasing participation in nutrition programs; (K) increasing nutritional education; and (L) reducing substance abuse; (4) foster the development of responsible, productive, and self-sufficient citizens by: (A) improving workforce skills; (B) increasing employment, earnings, and benefits; (C) increasing housing opportunities; (D) increasing child-care and other dependent-care services; (E) improving education and vocational training to meet specific career goals; (F) reducing school dropouts; (G) reducing teen pregnancy; (H) improving parental effectiveness; (I) increasing support services for people with disabilities; (J) increasing services to help people with disabilities maintain or increase their independence; (K) improving access to work sites, accommodations, transportation, and other public places and activities covered by the federal Americans with Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.); and (L) improving services to juvenile offenders; (5) provide needed resources and services to the people of this state when they cannot provide or care for themselves by: (A) increasing support services for adults and their families during periods of unemployment, financial need, or homelessness; (B) reducing extended dependency on basic support services; and (C) increasing the availability and diversity of long-term care provided to support people with chronic conditions in settings that focus on community-based services with options ranging from their own homes to total-care facilities; (6) protect the physical and emotional safety of all the people of this state by: (A) reducing abuse, neglect, and exploitation of elderly people and adults with disabilities; (B) reducing child abuse and neglect; (C) reducing family violence; (D) increasing services to truants and runaways, children at risk of truancy or running away, and their families; (E) reducing crime and juvenile delinquency; (F) reducing community health risks; and (G) improving regulation, accountability, and monitoring of health and human services providers; [and] (7) improve the coordination and delivery of children's services; and (8) hold health and human services providers accountable to this state and the people of this state for all funds accepted or managed by the providers. SECTION 29. Section 531.0055(b), Government Code, is amended to read as follows: (b) The commission shall: (1) supervise the administration and operation of the Medicaid program, including the administration and operation of the Medicaid managed care system in accordance with Section 531.021; (2) perform information systems planning and management for health and human services agencies under Section 531.0273, with: (A) the provision of information technology services at health and human services agencies considered to be a centralized administrative support service either performed by commission personnel or performed under a contract with the commission; and (B) an emphasis on research and implementation on a demonstration or pilot basis of appropriate and efficient uses of new and existing technology to improve the operation of health and human services agencies and delivery of health and human services; (3) monitor and ensure the effective use of all federal funds received by a health and human services agency in accordance with Section 531.028 and the General Appropriations Act; (4) implement Texas Integrated Enrollment Services as required by Subchapter F, except that notwithstanding Subchapter F, determining eligibility for benefits under the following programs is the responsibility of and must be centralized by the commission: (A) the child health plan program; (B) the financial assistance program under Chapter 31, Human Resources Code; (C) the medical assistance program under Chapter 32, Human Resources Code; (D) the nutritional assistance programs under Chapter 33, Human Resources Code; (E) long-term care services, as defined by Section 22.0011, Human Resources Code; (F) community-based support services identified or provided in accordance with Section 531.02481; and (G) other health and human services programs, as appropriate; [and] (5) implement programs intended to prevent family violence and provide services to victims of family violence; and (6) ensure that the Department of Family and Protective Services contracts and places foster children with charitable providers to the fullest extent possible. SECTION 30. Chapter 531, Government Code, is amended by adding Subchapter G-2 to read as follows:
SUBCHAPTER G-2. COMBINING AVAILABLE FUNDING FOR WRAP-AROUND MANAGED CARE OF FOSTER CHILDREN.
Sec. 531.261. DEFINITIONS. In this subchapter: (1) "Foster child" means a child eligible for state services under Chapter 264, Family Code. (2) "Section 1915(c) Medicaid waiver" means a federally funded Medicaid program of the state that is authorized under Section 1915(c), Social Security Act (42 U.S.C. Section 1396n(c)). (3) "Title IV-E waiver program" means an authorized program that provides for federal financial participation under Title IV-E, Social Security Act (42 U.S.C. Section 670 et seq.). (4) "Wrap-around managed care" means the consolidation of federal, state, and local funding available to provide a wide variety of services tailored to meet the particular needs of foster children. Sec. 531.262. PILOT "WRAP-AROUND" MANAGED CARE PROGRAM. (a) The commission shall develop a pilot program to consolidate available funding from federal, state, and local sources to provide an integrated level of services that meet the needs of foster children. (b) The program may include: (1) applying for Section 1915(c) Medicaid waivers authorized under the Social Security Act; (2) expanding existing Section 1915(c) Medicaid waivers; (3) creating a Title IV-E waiver program; or (4) using savings from other programs to maximize federal funding for the wrap-around managed care program. Sec. 531.263. POPULATION SERVED. (a) The program may target: (1) a particular population, such as: (A) teens with behavioral problems; or (B) children at risk of entering foster care; or (2) a geographic area, such as a region with a high percentage of children switching placements. (b) The population served should include foster children requiring high-cost services, such as inpatient hospital care or inpatient psychiatric facilities. Sec. 531.264. REPORT. The commission shall report the results of the pilot to the governor and Legislative Budget Board not later than November 1, 2006. The report shall include: (1) sources of federal, state, and local funds available for wrap-around managed care; (2) guidelines for integrating services for foster children served under the program; (3) target populations that may be served by the program; (4) criteria for expansion of the program to target populations; and (5) other information the commission determines is necessary to the success of the program. SECTION 31. Chapter 531, Government Code, is amended by adding Subchapter G-3 to read as follows:
SUBCHAPTER G-3. POOLED FUNDING FOR PREVENTATIVE SERVICES.
Sec. 531.271. RESOURCES. The commission and the Department of Family and Protective Services shall develop and implement a plan to pool funding with other state agencies and local communities to provide preventative services designed to keep children out of foster care. Sec. 531.272. PREVENTATIVE SERVICES. Preventative services may include: (1) child and family counseling; (2) instruction in parental and homemaking skills; (3) parent support services; (4) temporary respite care; and (5) crisis services. Sec. 531.273. REPORT. The commission shall include the results of the pooled funding preventative services plan under this subchapter in the report to the governor and Legislative Budget Board required by Section 531.264. SECTION 32. (a) Section 2155.144, Government Code, is amended by amending Subsections (h), (i), (j), (k), (m), and (o) and by adding Subsection (o-1) to read as follows: (h)(1) The Health and Human Services Commission shall adopt rules and procedures for the acquisition of goods and services under this section that apply to all health and human services agencies, including rules adopted with the commission's assistance that allow an agency to make purchases through a group purchasing program except when a better value is available through another procurement method. The rules of the health and human services agencies must be consistent with the rules of the Health and Human Services Commission. (2) The Health and Human Services Commission shall create a foster care performance team to develop criteria to be included in all foster care contracts. The team shall develop clearly defined and measurable standards for foster care contracts directly relating to factors within the control of the providers. The team shall develop performance standards which shall include measurable criteria for identification of foster care service providers that do not provide quality care and that should not receive additional contract awards and whose contracts should be revoked. (3) The foster care performance team created under Subdivision (2) shall include contracting experts from multiple state agencies, foster care providers and clients, performance-based contract experts from the state auditor's office, other state agencies, and other experts in outcome-based contracts. (4) The Health and Human Services Commission shall create an alternative payment plan in all foster care services contracts to encourage the reduction of the period that children are in intensive levels of care. The incentive payment plan must provide several alternative payment mechanisms to encourage foster care contractors to improve the quality of care, encourage efficient use of funding, or reduce the period of intensive care of children under program-related client services contracts for foster care, taking into consideration: (A) managed care; (B) bonuses or penalties; or (C) regional payment mechanisms to further create financial incentives, improve the quality of care and encourage efficient use of funding, or other appropriate financial mechanisms. (5) The Health and Human Services Commission shall, in the development of the alternative payment plan required by Subdivision (4), design financial models considering plans for outsourcing and input from local officials, foster care providers, and other interested persons. (i) The [Subject to Section 531.0055(c), the] Health and Human Services Commission shall develop, update annually, and provide to the state auditor for review a single statewide risk analysis procedure. The commission and each [Each] health and human services agency shall comply with the procedure. The procedure must provide for: (1) assessing the risk of fraud, abuse, or waste in health and human services agencies contractor selection processes, contract provisions, and payment and reimbursement rates and methods for the different types of goods and services for which health and human services agencies contract; (2) identifying contracts that require enhanced contract monitoring; [and] (3) coordinating contract monitoring efforts among health and human services agencies; and (4) evaluating contracts for the care of children that are effectively designed and monitored to minimize risk to the life, health, safety and well-being of children, especially those in foster care. (j) The [Subject to Section 531.0055(c), the] Health and Human Services Commission shall publish and provide to the state auditor for review, and shall update at least annually, a contract management handbook that establishes consistent contracting policies and practices to be followed by all health and human services agencies. The handbook shall be consistent with the contract management handbook developed by the Health and Human Services Commission for its agency contracts and shall supplement and be consistent with the contracts management guide developed by the contract advisory team under Chapter 2262. The handbook [may] shall include standard contract provisions and formats for health and human services agencies to incorporate [as applicable] in their contracts and standard procedures for enforcing and monitoring these provisions and formats. The handbook shall also include standard contract provisions, formats and procedures that specifically address, and refer to by date of the report, each of the state auditor's and comptroller's major findings and recommendations to the Health and Human Services Commission, or any health and human service agency, on contracting. Without limiting the foregoing requirements, the handbook shall include standard contract provisions, formats and procedures that specifically define and mandate: (1) disclosure by all proposed contractors prior to contract and contractor evaluation of any actual or potential related party transactions, relationships, interests, and any other actual or potential conflict of interest transactions and relationships under or related to any proposed contract with or administered by the Health and Human Services Commission or any health and human services agency; (2) disclosure by all proposed contractors prior to contract evaluation under Subdivision (1) of the previous ten years ownership and business history of the proposed contracting entity and the proposed contracting entity's individual owners and key personnel, including all other contracts with the state and all work of a similar nature performed or contracted to be performed with the state or any other entity, in or outside the state, during that previous ten years; (3) disclosure updates by all contractors throughout the contract terms of any actual or potential changes to any disclosures under the handbook's provisions, formats and procedures under Subdivisions (1) and (2); (4) measurable performance standards for a contractor's delivery of services, including deadlines for delivery, and evaluation under specific criteria prior to written acceptance by the state; (5) schedule of payments for measurable deliverables received and accepted in writing by the state as in compliance with all contract requirements prior to approval of payments; (6) consequences of the contractor's failure to comply with specific requirements of the contract, such as failure to disclose or update disclosures under Subdivisions (1)-(3), failure to meet performance standards under Subdivision (4), and failure to submit compliant deliverables under Subdivision (5), including payment of liquidated and other damages, refunding of prior payments under the contracts, forfeiture of payments under the contracts, immediate contract termination for cause, and disbarment from future contracts with the Health and Human Services Commission and the state; (7) open and competitive, public solicitation of contracts and contractors, with contract provisions included, through notice to all interested parties posted on the Texas Marketplace; and (8) other provisions, formats and procedures recommended by the state auditor. (k) The [Subject to Section 531.0055(c), the] Health and Human Services Commission, in cooperation with the comptroller, shall establish a central contract management database that identifies each contract made with a health and human services agency. The commission may use the database to monitor health and human services agency contracts, and health and human services agencies may use the database in contracting. A state agency shall send to the commission in the manner prescribed by the commission the information the agency possesses that the commission requires for inclusion in the database. (m) The [Subject to Section 531.0055(c), the] Health and Human Services Commission shall develop and implement a statewide plan to ensure that each entity that contracts with a health and human services agency and any subcontractor of the entity complies with the accessibility requirements of the Americans with Disabilities Act of 1990 (42 U.S.C. Section 12101 et seq.). (o) The Health and Human Services Commission shall prepare an annual report that assesses the compliance of each health and human services agency with the requirements imposed under this section, and compliance of the commission and each agency with the major findings and recommendations of the state auditor and the comptroller in reports to the commission or agency on contracting, and that identifies any material risk to the state or to the clients of the health and human services agency that results from the agency's procurement and contracting practices. The commission may request the assistance of the state auditor in preparing the report. The state auditor shall conduct reviews as necessary to assess compliance under this subsection as determined by the Legislative Audit Committee. The commission shall file the report with the governor, the lieutenant governor, and the speaker of the house of representatives not later than December 15 of each year. (o-1) The relationships and interests described in Subsection (j) include all relationships or interests the proposed contractor has or may have with any party to a proposed or actual transaction with the state or the contractor if a reasonable person could expect the proposed or actual relationship or interest to constitute a conflict of interest, create even the appearance of impropriety, or diminish the proposed contractor's independence of judgment, any performances under the contract or any of the contractor's responsibilities to the state. The relationships and interests described in Subsection (j) include all direct, indirect, personal, private, commercial, or business relationships and interests, regardless of whether they are pecuniary. (b) Section 2155.144, Government Code, as amended by Subsection (a) of this section, applies only to a contract that is entered into or renewed on or after the effective date of this section. A contract entered into or renewed before that date is governed by the law in effect on the date the contract was entered into or renewed and the former law is continued in effect for that purpose. (c) Not later than September 1, 2005, the Health and Human Services Commission shall complete and provide to the state auditor the initial, updated single statewide risk analysis procedure required under Section 2155.144(i), Government Code, as amended by Subsection (a) of this section. (d) Not later than September 1, 2005, the Health and Human Services Commission shall complete, publish, and provide to the state auditor and the Contract Advisory Team under Subchapter C, Chapter 2262, Government Code, the updated handbook required by Section 2155.144(j), Government Code, as amended by Subsection (a) of this section. (e) Section 2155.144(j) and (o), Government Code, as amended by Subsection (a) of this section and relating to the state auditor's and comptroller's major findings and recommendations to the Health and Human Services Commission or a health and human services agency on contracting, apply to reports dated on or after January 1, 1999, from the state auditor and the comptroller to the commission or a health and human services agency. SECTION 33. (a) Subchapter C, Chapter 2155, Government Code is amended by adding Section 2155.1442 to read as follows: Sec. 2155.1442. FOSTER CARE RESIDENTIAL CONTRACTS. The Health and Human Services Commission shall approve, prior to signature, all contracts tentatively awarded, subject to such approval by the commission, by the Department of Family and Protective Services, or its designee for the care of foster children. Prior to approval, the commission shall ensure that each contract: (1) includes provisions, formats, and procedures in the commission's handbook published under Section 2155.144, including those required under Section 2155.144(j)(1)-(8); (2) requires the department's contract management employees to make no less than four unannounced visits per year to the contractor's facilities and report their findings to the Health and Human Services Commission; and (3) prevents a contractor or other residential care provider from rejecting or removing foster children from its facility prior to completion of a departmental review and receiving written approval from the department's executive director. (b) Section 2155.1442(c), Government Code, as added by Subsection (a) of this section, applies only to a contract that is entered into or renewed on or after the effective date of this section. A contract entered into or renewed before that date is governed by the law in effect on the date the contract was entered into or renewed and the former law is continued in effect for that purpose. SECTION 34. (a) Subchapter C, Chapter 2155, Government Code, is amended by adding Section 2155.1443 to read as follows: Sec. 2155.1443. FOSTER CARE RESIDENTIAL CONTRACT MANAGEMENT. (a) The state auditor shall conduct a management review of the contract management employees of the Health and Human Services Commission and the Department of Family and Protective Services and make recommendations regarding the organization of, and skills and educational requirements for, those employees. The state auditor shall, in this review, also make recommendations regarding the implementation of financial accountability provisions and processes to ensure effective and efficient expenditure of state and other contract funds. The state auditor shall report annually to the governor, lieutenant governor, the speaker of the house of representatives, and the comptroller on the auditor's recommendations and the commission's and the department's implementation of each recommendation. (b) The Health and Human Services Commission, in coordination with the state auditor, shall perform complete, on-site financial audits of selected contractors as needed. The state auditor shall select these contractors based on the contract's risk assessment rating, allegations of fraud or misuse of state or other contract funds, or other appropriate audit selection criteria. The state auditor shall include findings from these on-site financial audits in the annual report to the governor and other representatives of the state as required by Section 2155.1443(a). The state auditor, however, shall immediately report to the governor and other representatives under Subsection (a) any findings of fraud or other misuse of state or other contract funds. (c) The executive director of the Department of Family and Protective Services shall review and provide final approval, on behalf of the department, for each contract related to the care of foster children and their families that has an anticipated value over $25,000 in any one contract year. Other than the oversight of the Health and Human Services Commission of the department's contracts, this final contract approval authority may not be delegated to other department employees or another agency. (d) The executive director of the Department of Family and Protective Services shall ensure that all files related to contracts for the residential care of foster children are complete and accurately reflect a contractor's actual, updated contract performance on an ongoing basis. The executive director shall ensure that the files are retained and available to the state auditor and other representatives of the state in either paper, digital, or image form, and in accordance with the department's records retention procedures, for no less than ten years after the end of the contract term or final resolution of any issues under a terminated or expired contract, whichever is later. The department shall develop a database using information in the files to track contractor performance, governance, and employees. The department shall use the database to assist the department in performing background criminal and financial checks on proposed contractors and contractors, their corporate and other ownership, related parties, and employees. (e) The department may develop an Internet-based system to enable contractors to review their reimbursement accounts or other pertinent financial data and reconcile their accounts. (b) Section 2155.1443, Government Code, as added by Subsection (a) of this section, applies only to a contract that is entered into or renewed on or after the effective date of this section. A contract entered into or renewed before that date is governed by the law in effect on the date the contract is entered into or renewed and the former law is continued in effect for that purpose. (c) Not later than December 1, 2005, the state auditor shall complete and publish the management review and report required by Section 2155.1443(a)-(b), Government Code, as added by Subsection (a) of this section. (d) Not later than September 1, 2005, the Health and Human Services Commission, in coordination with the state auditor, shall begin the on-site financial reviews of selected contractors required by Section 2155.1443(b), Government Code, as added by Subsection (a) of this section. (e) Not later than December 1, 2005, the Department of Family and Protective Services shall complete the database required by Section 2155.1443(d), Government Code, as added by Subsection (a) of this section. SECTION 35. (a) Section 32.024, Human Resources Code, is amended by adding Subsection (aa) to read as follows: (aa) The Health and Human Services Commission shall include in any agreement described in Section 32.021(b) a provision providing for payment of the cost of providing rehabilitative services to a child in a residential treatment center or a similar facility if: (1) the Department of Family and Protective Services has been named managing conservator of the child; and (2) federal matching funds are available for the payment. (b) This subsection applies if an agreement described in Section 32.021(b), Human Resources Code, does not include on the effective date of this section the provision described in Section 32.024(aa), Human Resources Code, as added by Subsection (a) of this section. As authorized by federal law concerning the amendment of state plans for medical assistance, the Health and Human Services Commission, with the cooperation and assistance of the Department of Family and Protective Services, shall amend the agreement to include the provision. The amendment shall be completed as soon as possible after the effective date of this section. SECTION 36. (a) Section 40.058(b)-(c), Human Resources Code, is amended by amending Subsections (b) and (c) and adding Subsections (f)-(i) to read as follows: (b) A contract for the purchase of program-related client services must include: (1) clearly defined goals and outcomes that can be measured to determine whether the objectives of the program are being achieved; (2) clearly defined sanctions or penalties for noncompliance with contract terms; [and] (3) clearly specified accounting, reporting, and auditing requirements applicable to money received under the contract; and (4) clearly defined performance standards that relate directly to the quality of care provided to residents of foster care facilities. (c) The department shall monitor a contractor's performance under a contract for the purchase of program-related client services. In monitoring performance, the department shall: (1) use a risk-assessment methodology to ensure compliance with financial and performance requirements under the contract; [and] (2) obtain and evaluate program cost information to ensure that all costs, including administrative costs, are reasonable and necessary to achieve program objectives; and (3) review and evaluate all foster care service provider contracts against the performance standards set forth in Subsection (b)(4) for compliance with all performance standards of the contract. (f) The department shall terminate a contract with a foster-care service provider contract if the contractor does not meet the specific performance standards set forth in Subsections (b)(4) and (c)(3). The department may not award or renew a foster care services contract with such contractor if the contractor does not meet such performance standards. (g) The Health and Human Services Commission shall create a foster care performance team to develop performance criteria for foster care contracts. The team shall include contracting experts from multiple state agencies, foster care providers and clients, performance-based contract experts from the state auditor, other state agencies, and other experts in outcome-based contracts. The department shall adopt the clearly defined performance standards for inclusion in foster care contracts as developed and recommended by the team. The team shall develop clearly defined and measurable standards for foster care contracts directly relating to factors within the control of the providers. The team shall develop performance standards which shall include measurable criteria for identification of foster care service providers that do not provide quality care and that should not receive additional contract awards and whose contracts should be revoked. (h) The department shall use performance-based contracting as recommended by the Health & Human Services Commission's foster care performance team as provided in Section 2155.144(h)(2), Government Code. (i) The department shall use alternative payment contracting in its foster care contracts as recommended by the Health & Human Services Commission and provided in Section 2155.144(h)(2), Government Code. (b) Section 40.058(b)(4), (c)(3), (f), and (g), Human Resources Code, as added by Subsection (a) of this section, applies only to a program-related client services contract for the delivery of foster care services or residential treatment center services or similar services that is entered into or renewed on or after the effective date of this section. A contract for those services entered into or renewed before that date is governed by the law in effect on the date the contract is entered into or renewed and the former law is continued in effect for that purpose. SECTION 37. (a) Subchapter A, Chapter 42, Human Resources Code, is amended by adding Section 42.003, to read as follow: Sec. 42.003. INFORMATION. The department shall require caseworkers to update information in the foster children database within 24 hours of a change in the child's placement location or runaway status. (b) The Department of Family and Protective Services shall adopt rules and establish standards, policies, and procedures to implement and administer Section 42.003, Human Resources Code, as added by Subsection (a) of this section, not later than January 1, 2006. SECTION 38. Subchapter A, Chapter 42, Human Resources Code, is amended by adding Section 42.004 to read as follows: Sec. 42.004. DATABASE OF MISSING CHILDREN. (a) The department shall establish and maintain a separate database dedicated to information about children in the foster care system whose location is unknown. (b) The database shall include photographs and other identifying information, as well as medical and placement history. (c) The information in the database shall be made available to law enforcement agencies, the medical community, schools, and others who would be involved in statewide efforts to locate missing foster children. (d) Notwithstanding any other statute, information described in this section is considered to be public information. SECTION 39. Subchapter A, Chapter 42, Human Resources Code, is amended by adding Section 42.005, to read as follows: Sec. 42.005. INTAKE DATABASE. (a) The department shall ensure that its statewide computerized intake system is designed and operated in such a way that the system identifies each call that relates to a foster child. (b) All cases involving calls to which Subsection (a) applies shall be tracked and assigned in such a way that it is clearly known to any employee working on the case that the matter involves a foster child. (b) The Department of Family and Protective Services shall adopt rules and establish standards, policies, and procedures to implement and administer Section 42.005, Human Resources Code, as added by Subsection (a) of this section, not later than January 1, 2006. SECTION 40. (a) Subchapter A, Chapter 42, Human Resources Code, is amended by adding Section 42.006 to read as follows: Sec. 42.006. MISSING CHILDREN WEBSITE. (a) The department shall develop and implement a program to display on its internet website the name, age, photograph, and location information about any child in the foster care system who has been reported as missing. The department may also display other relevant information that the department determines will be useful in efforts to locate and ensure the safety of a child described in this section. (b) Notwithstanding any other statute, information required to be provided under this section is considered to be public information. (c) The department shall regularly update the website by adding additional information that becomes available and by deleting the information about a child who is no longer missing. (b) The Department of Family and Protective Services shall adopt rules and establish standards, policies, and procedures to implement and administer Section 42.006, Human Resources Code, as added by Subsection (a) of this section, not later than January 1, 2006. SECTION 41. Section 42.041, Human Resources Code, is amended by adding Subsections (f)-(j) to read as follows: (f) Not later than September 1, 2005, the department shall institute a rulemaking proceeding under Chapter 2001, Government Code, for the complete review and revision of its licensing rules. The revised rules must be more stringent and expressly provide for the licensing of all residential care facilities that are subject to this section, including all therapeutic camps and associated campsites. The revised rules must provide for the revocation of any license for failure to comply with a rule of the Department of State Health Services, for any violation of a rule of the department, or for any other reason as determined by the department. The revised rules shall ensure that the license of any facility engaged in repetitive or recurring violations of the department's licensing standards are revoked. The revised rules shall be adopted in time for them to take effect not later than January 1, 2006. (g) Each therapeutic camp or associated campsite must be licensed by the department. The department's rules that govern the qualifications that apply to staff of a residential treatment center shall apply to all staff of a therapeutic camp. No therapeutic camp or associated campsite may provide residential care for any period longer than 21 days, unless licensed as a permanent therapeutic camp. (h) No officer, director, board member, or administrator of any residential care facility that has been the subject of license revocation, or that has voluntarily relinquished its license upon investigation, may hold a license or operate a residential child care facility in the state, and no licensed facility may employ any such officer, director, board member, or administrator. (i) Each licensed residential childcare facility shall be inspected at least annually by the Texas Department of State Health Services and the Texas Commission on Environmental Quality for compliance with health and environmental regulations. In addition, the department shall conduct at least an annual inspection, and more frequent inspections as may be warranted by conditions, of each licensed residential care facility to ensure compliance with all licensing standards applicable to the facility established by the department. The department through such inspections shall determine compliance with all licensing standards. The department shall provide training at least annually to all staff that visit residential child care facilities that shall include training regarding licensing standards. (j) The department shall establish a database, accessible by all foster care facilities and caregivers, identifying and describing its licensing requirements and the best practices to be followed in providing residential foster care. SECTION 42. (a) Section 42.042, Human Resources Code, is amended by adding Subsection (q) to read as follows: (q) Each licensed residential or foster home shall notify the department and the appropriate local law enforcement agency immediately upon determining that a child is missing from the facility or foster home. (b) The Department of Family and Protective Services shall adopt rules and establish standards, policies, and procedures to implement and administer Section 42.042(q), Human Resources Code, as added by Subsection (a) of this section, not later than January 1, 2006. SECTION 43. (a) Subchapter C, Chapter 42, Human Resources Code, is amended by adding Section 42.0428 to read as follows: Sec. 42.0428. PERSONAL RESTRAINT METHODS. (a) The department shall identify and maintain a list of approved behavior management systems that incorporate personal restraints that are appropriate and safe for use with children. (b) The department shall develop licensing standards that include requirements to use only the approved personal restraint techniques and procedures identified under Subsection (a). The standards also must include training requirements for persons utilizing personal restraint at licensed child-care facilities and a requirement that the training be conducted only by persons certified to conduct the training. (c) The department shall adopt rules and establish standards, policies, and procedures to administer this section. (b) The Department of Family and Protective Services shall adopt the rules required by Section 42.0428, Human Resources Code, as added by Subsection (a) of this section, not later than January 1, 2006. SECTION 44. Section 42.044, Human Resources Code, is amended by adding Subsections (e)-(g) to read as follows: (e) The department shall maintain standardized criteria and questions for the inspections and investigations conducted by the department's employees under this section. (f) An employee of the department who conducts an inspection or investigation under this section shall document fully in the division's database: (1) the results of the inspection or investigation; (2) the reasoning for any recommendation or decision made by the employee during the inspection or investigation; and (3) any action related to the investigation that is taken by the employee after the inspection or investigation is completed. (g) The department shall maintain an independent quality assurance program that audits the department's inspection or investigatory reports under this section for accuracy and completeness. An audit that is conducted in compliance with generally recognized sampling techniques satisfies the requirements of this subsection. The department shall retain the results of an audit conducted under this subsection for at least five years after the audit is completed. SECTION 45. Section 42.0442, Human Resources Code, is amended by adding Subsection (d) to read as follows: (d) The department shall make the data collected by the department under this section directly available to judges, juvenile probation officers, and investigators from the Juvenile Probation Commission for the purpose of administering programs or enforcing laws within the jurisdiction of the respective judge, juvenile probation officer, or Juvenile Probation Commission investigator. If a child-care inspection database is developed as provided by this section, the department shall make the information available through that database or other available electronic information systems. Access to data information under this subsection shall mean full viewing access. SECTION 46. Section 42.046, Human Resources Code, is amended by adding Subsections (e)-(g) to read as follows: (e) The department shall maintain standardized criteria and questions for the investigations conducted by the department's employees under this section. (f) An employee of the department who conducts an investigation under this section shall document fully in the division's database: (1) the results of the investigation; (2) the reasoning for any recommendation or decision made by the employee during the investigation; and (3) any action related to the investigation that is taken by the employee after the investigation is completed. (g) The department shall maintain an independent quality assurance program that audits the department's investigatory reports under this section for accuracy and completeness. An audit that is conducted in compliance with generally recognized sampling techniques satisfies the requirements of this subsection. The department shall retain the results of an audit conducted under this subsection for at least five years after the audit is completed. SECTION 47. Section 42.056, Human Resources Code, is amended by amending Subsection (b) and adding Subsections (d)-(f) to read as follows: (b) The department shall conduct background and criminal history checks using: (1) the information provided under Subsection (a); (2) the information made available by the Department of Public Safety under Section 411.114, Government Code, and [or] by the Federal Bureau of Investigation or other criminal justice agency under Section 411.087, Government Code; and (3) the department's records of reported abuse and neglect. (d) The department shall provide the results of a background or criminal history check conducted under this section regarding a prospective employee to a director, owner, or operator of a residential child care facility. (e) The department shall provide information regarding a person's prior employment in Texas residential childcare to any prospective employer as part of a background check under this section. (f) No person described in Subsection (a)(1) or (2) may provide direct care or have direct access to a child in a residential child care facility prior to the completion of the person's background check, criminal history check, and mandatory drug test. SECTION 48. (a) Subchapter C, Chapter 42, Human Resources Code, is amended by adding Section 42.057 to read as follows: Sec. 42.057. RISK ASSESSMENT (a) The department shall perform a risk assessment of any employee or volunteer who has been convicted of a crime before the individual is allowed access to a child who is provided care under this chapter. The department shall develop similar criteria for any person 14 years of age or older who will regularly or frequently be staying at the facility or home while children are being provided care. (b) The department shall develop and maintain risk assessment criteria to ensure the safety and well-being of a child's physical or mental health or welfare. (c) The department shall adopt rules to administer this section. (b) The Department of Family and Protective Services shall adopt rules under Section 42.057, Human Resources Code, as added by Subsection (a) of this section, not later than January 1, 2006. SECTION 49. (a) Subchapter C, Chapter 42, Human Resources Code, is amended by adding Section 42.058 to read as follows: Sec. 42.058. REQUIRED CHILD FATALITY INVESTIGATION. (a) The department shall investigate the death of a child in foster care or other residential care. The investigation shall include a review of the child's living arrangements, the circumstances involved in the death, and any recommendations for policy or procedural changes that could help prevent the death or extend the life of a child in a similar circumstance. (b) The department shall refer all unexpected deaths for investigation in accordance with the procedures outlined in Sections 264.514 and 264.515, Family Code. (c) The department shall prescribe the content and form of information to be included in the child's death investigation file. The file shall include at a minimum: (1) the results of any investigation performed under this section; (2) the department's child death report forms, intake, and licensing investigation reports; (3) any referral to a child fatality committee; (4) any medical examiner report, autopsy report, medical record, police report, photograph, or recording related to the death; (5) the child's facility admissions, treatment, and service plans; (6) a list of any medications administered to the child; (7) the child's foster home placement history records; (8) a list of any licensing violations of the child-care facility that provided care to the child; (9) a description of any prior allegations of abuse or neglect against the child's caregiver; and (10) any log or progress notes concerning the child not otherwise described in this subsection. (d) A copy of the investigation file shall be maintained at both the department's central office and the appropriate department regional office. (e) The department shall forward the full contents of the child's death investigation file to the state risk manager and the appropriate internal and external child fatality review team committees. (f) The department shall adopt rules and establish policies and procedures to administer this section. (g) In this section, "unexpected death" has the meaning assigned by Section 264.501, Family Code. (b) The Department of Family and Protective Services shall adopt the rules required by Section 42.058, Human Resources Code, as added by Subsection (a) of this section, not later than January 1, 2006. SECTION 50. (a) Subchapter C, Chapter 42, Human Resources Code is amended by adding Section 42.061 to read as follows: Sec. 42.061. PLACEMENTS OF CERTAIN CHILDREN. (a) The department shall prohibit the placement of a child who has: (1) been convicted of a sexually related offense; (2) pleaded guilty to a sexually related offense; (3) pleaded nolo contendere or no contest to a sexually related offense; or (4) been reported to have a history of inappropriate sexual conduct with a child in a residential child care facility who has no record or history of sexually related conduct. (b) The department shall prohibit the placement of a child who has: (1) been convicted of assault, battery, or other violent offense; (2) pleaded guilty to assault, battery, or other violent offense; (3) pleaded nolo contendere or no contest to assault, battery, or other violent offense; or (4) been reported to have a history of violent behavior with a child in a residential child care facility who does not have a record or history of violent behavior. (c) The department shall prohibit the placement of a child who has a history or record of having been sexually abused with a child in a residential child care facility who does not have a history of being sexually abused, unless a psychologist or licensed therapist has determined that it is in the best interest of both children to be placed together. (d) The department shall review all current placements to ensure compliance with this section. (e) The department shall adopt rules to administer this section. (b) The Department of Family and Protective Services shall adopt the rules required by Section 42.061(e), Human Resources Code, as added by Subsection (a) of this section, not later than January 1, 2006. SECTION 51. Subchapter C, Chapter 42, Human Resources Code, is amended by adding Section 42.062 to read as follows: Sec. 42.062. DRUG TESTING. (a) Each residential child care provider regulated by the department shall establish and maintain a drug testing policy for its employees. The provider may adopt the model drug testing policy adopted by the department under Subsection (b) or another policy. (b) The department by rule shall adopt a model drug testing policy for use by foster care providers. The policy must be designed to ensure the safety of child residents through appropriate drug testing and to protect the rights of employees. The policy must require random, unannounced drug testing for each employee that has direct contact with a child resident of the foster care facility. (c) The department shall require a drug test of a person who directly cares for or has access to a child in a residential care facility within 24 hours after the department receives notice of an allegation that the person has abused drugs. SECTION 52. Subchapter C, Chapter 42, Human Resources Code, is amended by adding Section 42.063 to read as follows: Sec. 42.063. REPORTING OF INCIDENTS AND VIOLATIONS. (a) A person that is required to obtain a license under Section 42.041 shall report to the department each serious incident involving a child who receives services from the person, regardless of whether the department is the managing conservator of the child. (b) A person that is required to obtain a license under Section 42.041 shall report to the department any potential violation of a requirement of this chapter. (c) An employee of a person described in Subsection (a) or (b) is required to report suspected abuse or neglect directly to the statewide intake system. (d) An employee or volunteer of a child-care institution, child placing agency, foster home, or foster group home shall report any serious incident directly to the department if the incident involves a child under the care of the institution or home. (e) A foster parent shall report any serious incident directly to the department if the incident involves a child under the care of the parent. (f) An employee of the department shall report to the department any potential violation of a requirement of this chapter. (g) A report under this section must be provided according to the rules adopted and procedures established by the department. (h) In this section, "serious incident" means any suspected or actual incident that threatens or impairs the basic health, safety, or well-being of a child. The term includes: (1) the arrest, abuse, neglect, exploitation, running away, attempted suicide, or death of a child; (2) a critical injury of a child; and (3) an illness of a child that requires hospitalization. SECTION 53. (a) The department shall study the feasibility of requiring psychological testing of all foster care provider employees who have direct contact with children. The purpose of the study is to: (1) identify the psychological tests that would provide a means to identify individuals who may pose a danger or risk to children in foster care; (2) determine the least costly approaches to implementing a policy of required psychological testing; and (3) recommend policies to ensure the appropriate and lawful use of the tests. (b) In conducting the study, the department shall consult with local police, fire, and emergency medical services departments that use psychological testing to screen recruits. (c) The department may use funds appropriated for foster care purposes to perform the study or to contract with another entity to perform the study on the department's behalf. (d) The department shall report the findings of the study to the legislature and the governor. (e) In this section, "department" means the Department of Family and Protective Services. SECTION 54. (a) Except as provided in Subsections (b) and (c) of this section, this Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2005. (b) Sections 6, 7, 8, 9, 13, 14, 24, 37, 38, 39, 40, 41, 42, 43, 45, 47, 48, 49, 50, 51, and 53 of this Act take effect September 1, 2005. (c) Sections 44, 46, and 52 of this Act take effect January 1, 2006.